Nevada Assembly panel to consider Internet gambling bills

May 6, 2011

10:15 a.m. update: CARSON CITY (AP) — The Assembly Ways and Means Committee on Friday was to consider AB258, the Internet poker bill that was gutted by the Assembly Judiciary Committee earlier this session before being referred to the money committee.

The original bill would have prohibited the Nevada Gaming Commission from denying a license to online poker sites such as PokerStars, the prime backer of the bill, which had operated in a legal gray area for years.

That provision was stripped from the bill. As amended, the bill directs the Nevada Gaming Commission to begin drafting rules to regulate online poker, but stipulates that Internet gambling would not be implemented until sanctioned by Congress or the Justice Department.

Under the Nevada bill, online sites would need to have a partnership with an existing non-restricted license holder or an affiliate that has been in business for at least five years.

Last month, the founder of PokerStars was among 11 people charged with bank fraud, money laundering and operating illegal gambling businesses. The company has since shut down its real-money, online gambling offerings to U.S. players.

PokerStars, based in the Isle of Man, also contributed $272,000 to Nevada political campaigns in apparent violation of federal law, according to campaign finance disclosures first reported by the Las Vegas Sun. Most Nevada lawmakers and other officials say they were unaware of the company’s foreign status and have since returned contributions.

Federal law prohibits foreign entities from contributing to federal, state or local political campaigns, but state law is unclear. Sen. Greg Brower, R-Reno, is pursuing amending an existing bill in the Legislature to clarify Nevada statutes. Brower is a former U.S. attorney for Nevada.

Also on Friday, the Assembly Ways and Means Committee was scheduled to discuss AB219. The bill would allow the state to rake in 75 percent of any unredeemed slot machine wagering vouchers that go unclaimed for up to 30 days. Those winnings that gamblers forget to cash in are currently kept by casinos.